Abstract
In recent years the demand for reliable small area statistics has increased for developing regional policies from both public and private sector in several countries. Direct survey estimates for small areas yield unsuccessful estimates due to small sample sizes. Therefore, small area estimation methods have been developed in the literature. In this study, 'annual average individual income (total)' and 'annual average household disposable income' are estimated for Diyarbakır and Şanlıurfa, which are provinces in Statistical Region of Diyarbakır, by considering these two main variables in 2003 Household Budget Survey data and by employing synthetic estimation method and two different regression models. Using synthetic method and auxiliary variable of annual average individual income, small area estimations are given in specific age groups in Nuts-2 in Diyarbakır and Şanlıurfa provinces. It is seen that these estimations, produced by synthetic method and regression method, are close to annual average individual income and annual average household disposable income, estimated from the 2003 Household Budget Survey.